The ongoing war in Iran is affecting technology industries globally, including smartphones, which are a key product for many users. The current crisis threatens to disrupt supply chains and cast a shadow over the prices of technological devices and products.
Reports indicate that the intensity of the war's impact extends to technology and artificial intelligence sectors, which have witnessed significant growth in recent years. However, investments in these areas are now facing severe challenges due to the ongoing conflict.
Details of the Conflict
A report by the British newspaper "Financial Times" stated that the conflict directly affects the supply chains related to the production of essential components for artificial intelligence and smartphones. For instance, the crisis surrounding random-access memory (RAM) is nearing a point of raising prices for smartphones and other devices, including gaming platforms.
The current reality is much more concerning than what occurred during the COVID-19 crisis, which saw significant increases in technological component prices that impacted various markets. The question now is: why are things unfolding this way?
Context and Background
The war is impacting chip manufacturing operations in major factories in East Asia, such as TSMC, which produces about 72% of the world's smart chips, as well as other companies like Samsung and SK Hynix, which produce 80% of random-access memory. Even if the conflicts were to end today, supply chains would remain affected for a long time.
Following the Iranian attacks targeting industrial facilities in Qatar, the production of liquefied natural gas and other chemicals was announced to be halted, directly impacting the energy supplies for factories in South Korea that rely on gas.
Consequences and Effects
Supply chains for chips have suffered severe damage due to gas supply shortages, complicating manufacturing operations that depend on vital resources such as sulfur and bromine. An Associated Press report indicates that helium gas, used in cooling semiconductor equipment, is also at risk due to the current conditions.
The risks lie in the threat to energy supply flows, which jeopardize the operational capacity of data centers, leading to investor reluctance to continue investing in the field of artificial intelligence. This sector may face a bubble that necessitates drastic reforms due to the shortages of utilized resources.
Impact on the Arab Region
The current crisis is significant for the Arab region, where gas-producing countries like Qatar play a pivotal role in supplying the world with its natural gas needs. As a result, any disruption in this system will affect other industries, especially considering the reliance on these materials for manufacturing tech devices.
As the war's effects continue, rising prices for tech devices and reduced availability in markets cannot be ruled out. We may also witness delays in the launch of new phones or their production in limited quantities.